How to Buy Your Home in Silicon Valley

Helpful Tips for Prospective
Home Buyers in Silicon Valley

Here are a few essential tips from a San Jose Realtor that you should keep in mind as a potential home buyer in Silicon Valley.

Why Should You Buy Your Home?

On top of enjoying the privilege of a permanent settlement for you and your family, there are two significant advantages to purchasing your own home:Building equity and Saving on Taxes.

The difference between what you owe on your home and its value is called equity. In the early years of a home mortgage, most of each monthly payment will go toward the interests, but as time passes it will go increasingly toward your principal balance (what you owe). Throughout the years your payments will reduce this balance, thus raising your equity. If your home increases in value, your equity will rise even more. Your equity is like a savings account and it could prove very important for future needs such as a retirement plan, or major purchases.

By law, you can deduct mortgage interest and property taxes from your U.S. Federal Income Tax Return and from your California State Income Tax Return. This results in significant tax savings, especially in the early years of a mortgage when interest payments are higher. At some stage, you may find that tax savings alone makes it less expensive to buy than to rent your home.

How To Find The Right Home

There are a number of factors to consider when choosing the right home in Silicon Valley and everyone’s priority is different.

Share with your real estate agent your priority list of things that matter most for you: Neighborhood preference; Single or Multi-level, Number of bedrooms and baths; Square footage; Yard size; Quality of schools; Age of the home and most of all the price range you are able to afford. If it’s out of your budget, it should not be considered.

Start with the most important features that your dream home must have. Then work down the list and think about what would be nice to have. This will provide a clear focus for your house hunting and facilitate the job of your real estate agent.

Costs of Purchasing A Home

In addition to your monthly mortgage payments, you will need money upfront(aka your down payment) and to cover the closing costs plus any move-related expenses and maintenance or repair costs for your new home.

Your down payment is a percentage of the property value and averages usually between 3-5% and 20% or more. This amount varies by the type of mortgage you obtain from your lender.

Closing costs are legal and financial fees associated to your purchase. They usually range from 2 to 7% of the property value and include such things as financing fees, taxes, title insurance, prepaid and escrow items.

For the record, title insurance is critical as it protects home buyers from losses due to defects in title. Before issuing a title insurance policy, title
companies will search and examine public records to identify liens, claims
or encumbrances on the property.

Making An Offer

Considering everything has come together, the price is within your budget, and a home matches your requirements, it is time to ask your Realtor to make an offer.

It is very important
that you understand all terms of the purchasing contract. Ask your
Realtor to take you through all the major provisions.

Before anything, and in compliance with California Law, obtaining a loan is a contingency of the offer unless it is a cash offer. Most Realtorswill tell you that you are in a much better position if you are pre-approved by your bank before making the offer.

A Pre-Qualification letter is based solely on what the potential buyer discloses orally to the loan officer about his/her earnings, credit score and total assets.

A Pre-Approval letter requires the borrower to provide documentation of his/her income and assets (2 wage statements; 1099s; recent pay stubs; bank statements; 401(k)s and so on). Needless to say that, given the current status of the real estate market in Silicon Valley, a pre-qualified buyer does not stand a chance to get his/her offer accepted.

If your Realtor's offer is accepted, the sale is approved. If not, the seller and his or her Listing Agent may counter-offer with different terms.

When Can You Buy After a Short Sale or a Foreclosure?

The estimated times that former home owners must wait to re-qualify for financing after a foreclosure, short sale, deed in lieu, or bankruptcy are as follows:

Conventional mortgage from Freddie Mac:

- 3 years following a short sale or deed-in-lieu

- 7 years after a foreclosure or bankruptcy

Conventional mortgage from Fannie Mae:

- 3 years after a short sale or deed-in-lieu

- 7 years after a foreclosure or bankruptcy

Federal Housing Administration (FHA)

- 1 to 3 years after a short sale or foreclosure

Department of Veterans Affairs:

- 1 year following a short sale or foreclosure

Portfolio Mortgage (e.g. jumbo. equity lines, construction loans):

- 3 to 7 years after a short sale or a deed-in-lieu or a foreclosure

Note that all above mentioned deadlines are subject to the discretion of our underwriter at your financial institution.

Purchasing a Home from a Foreign Seller

Under the provisions of the Foreign Investment in Real Property Tax Act
(aka FIRPTA), the escrow company is required to withhold a minimum of 15%
of the sales price and forward the funds to the IRS with the required
documentation on the Seller’s behalf.

To be clear, the withheld amount is not an additional tax on the foreign
seller, it is an estimated payment against the tax ultimately imposed on
gain from the sale.

Since February 2016, new withholding rates for any transaction covered by the FIRPTA legislation are as follows:

- 0% if the amount realized (typically, the purchase price) does not
exceed $300,000 and the buyer acquirers the property to use as a primary
residence.
- 10% if the amount realized is greater than
$300,000 and does not exceed $1,000,000. The buyers must also acquire
the property to use as a primary residence.
- 15% if the amount realized exceeds $1,000,000 regardless of the buyer’s use of the property.
- 15% if the property will not be used as the buyer’s primary residence.

Sophia is simply the best from the beginning all the way to closing. Very professional, knowledgeable and hard working! Enjoyed selling our house with Sophia!

~ Mo Y.

I honestly don’t know what I would have done without Sophia’s help. The property – a condo in downtown San Jose – needed to be sold quickly. Despite HOA litigation and adversarial market conditions, Sophia quickly and professionally arranged for the condo to be cleaned, staged and shown. Sophia also made sure the condo took center stage on Redfin and Zillow. Within just a few days, the condo had garnered thousands of views on various real estate sites. In no time at all we had a number of interested buyers and investors making inquiries. In record time, Sophia negotiated a great price and skillfully closed the deal. I would highly recommend Sophia for any real estate transaction in the Bay Area.

~ Aharon E.

Sophia is an amazing realtor. Because of her years of experience, her knowledge of the laws and her high work ethics, she simplified our part in selling our property in a very short amount of time. She is totally engaged in her clients welfare and takes on the majority of the work. She is a delightful, caring person and an absolute jewel to work with. She made this selling process so easy for us. Sophia is exceptional in her field. We are so grateful to have had her as our agent.

~ Diana S.

Sophia was amazing to work with. Because of her years of experience in Real Estate and Law, she made the sale of our property so easy. She provided us with needed resources and guided us through all the necessary steps. Sophia is totally committed to us with daily update communication. She is very organized, driven and a true professional. She has a charming personality and made us feel secure in all our decisions. We are very grateful that we found her thru Yelp when we needed to sell our property fast.

~ Am. N

I have known and worked with Sophia for several years. She is hard working, smart, and knows exactly what needs to get done. You and your family would be fortunate to have her on your side.

~ Steve M.

We were very pleased with our relationship with Sophia and the overall outcome. When we found out we had to sell our house quickly we began to search for who we connected with but also who was best qualified. We connected with Sophia due to her no nonsense approach, attention to detail, availability and her great understanding of the legals that surround the sale of a home. While doing all that she was very pleasant and personable. I would use Sophia again and recommend her to anyone looking to buy or sell. Thank you Sophia!

~ Ben C.

An excellent person for your real estate needs. Sophia felt like family and had very positive ideas during the remodeling stages that we incorporated into the final sale. She is a hard working agent and replied almost immediately to our inquiries. We had no problems and the final sale was in a matter of a few weeks once listed. We highly recommend her for your property.

~ Stephen G.

Smart, efficient, capable, honest, hardworking are just a few of the descriptions that come to mind to describe the amazing service provided by Sophia. She goes above and beyond expectations to be of assistance to her clients.

~ Linda S.

Sophia is wonderful! She helped us find the perfect buyer for our bizarrely beautiful house. She made the whole process such an easy affair and made sure all the I’s were dotted and T’s were crossed so that the sale went more smoothly than I ever imagined would be possible.

~ Darrel B.

Sophia is The Best. Professional, Ethics and Result oriented,
Look nowhere else and get in touch with Sophia. My family is very proud to have worked with her and she delivered more than expected. We learnt so much and are thankful to her. We Wish Sophia the Best

~ O. V.

Sophia helped my mother sell her house , while also helping her with overwhelming circumstances. Her sales strategy was impressive, and got my mother way more than she ever thought. She then helped her find a new house , perfect for her. All the while personally helping her with trying circumstances. This woman has the patience of a saint ! Her skills , integrity, knowledge, sincerity, and incredibly endearing personality would serve anyone looking to buy or sell ,or honorary member of the family for that matter. She's that good. Would not only recommend her, but go out of my way to steer someone her way. You simply cannot go wrong with Sophia.

~ Wally P.

Sophia is the most amazing Real Estate professional I have ever seen in action. She puts her client's interests first and goes to incredible lengths - above and beyond what one would expect. I am an attorney and have been practicing for over 25 years and have worked with and observed many Realtors over the years. Sophia is head and shoulders above the rest. Her care, attention to detail, and whole person approach are outstanding. She is the best that I have ever seen.

~ David B.

Sophia has been my agent twice, one time to sell and the other to buy. Thanks to her skills and experience, she was able to help us through each step of the process and get us great deals. I particularly appreciated her proactive attitude to get things done, and her amazing attention to details to make sure nothing slipped through the cracks. Each time we also got praise from the other parties about her professionalism.

~ Julien R.

Sophia has gone above and beyond in regards to helping my wife and I find a new home for our expanding family. She is very informative in all aspects of buying a home! I highly recommend her!

~ Josh M.

Sophia Delacotte is an outstanding real estate professional. She brings great understanding of her clients' needs, diligence, and taste. I highly recommend Sophia for any endeavor within her scope of expertise.

~ Michel R.

Working with Sophia was a great experience. She is not only a trustworthy person, but she also always had my best interest in mind. She showed me various condos and explained the pros and cons of all properties which made my decision to choose the right condo easier. She constantly followed up with all the parties involved to make sure the home buying process went smoothly. This is evidenced by the fact that we closed right on time! She even made sure all the repairs were completed to my condo before I moved in. I would recommend Sophia to anyone who wants a realtor that will fight for them every step of the way.

~ Sean M.

I worked with Sophia Delacotte several times of the last 18 months. She sold my home with suave and suggested some another great agents remotely for my relocation. There was: honest and frequent communication; clear expectations; and fairer than average rates from the start; no sandbagging; a watchful eye and excellent management of all aspects of the process and contracts. Other realtors in the last decade had really left me with a negative opinion of agents, but Sophia made a name for herself and removed my bias. I'm also glad for Sophia's eagle-eye for legal trouble, so when it came to here recommendations for covering ourselves, I followed them without hesitation. Suggestions on what needed fixed, and encouragement for transparent disclosures is important in California. Buying and/or selling a home can stressful, but it was fun with Sophia for myself and my family

~ Kyle B

Sophia Delacotte is thorough, knowledgeable, and helpful. She assisted me with the sale of my townhouse in San Jose. It sold after one open house, and I received multiple offers. Sophia screened all of the offers and recommended the offers which would close with the least amount of hassles or surprises. She is extremely knowledgeable about the real estate market. With her legal background, she is a strong and effective advocate for your side of the transaction. Sophia always kept me in the loop, was clear with what she needed, and the timing of the response to what she needed. She is a pleasure to work with, responsive, and committed to making the entire process go as smoothly as possible. I highly recommend Sophia and would definitely work with her again in the future.

~ Bonnie B.

Sophia has been very professional throughout the process of my house purchase. She was very patient as I was quite particular about what I want with the budget I have. Sophia was also very helpful and very knowledgeable. She is a very good realtor.

~ Jackson T.

When we met Sophia for the first time, on a Sunday afternoon, we were immediately struck by her professionalism and competence. With skill and patience, she navigated us through the complex and confusing steps of getting pre-approved for a loan, viewing the house, putting down an offer, and learning when to walk away. As first-time home owners, we were nervous and uncertain. Sophia gave us invaluable advice and encouragement during the ups and downs, and her knowledge of the real estate business and housing market always led us in the right direction.
One of our favorite things about having her as our agent was that she made herself constantly available. She met with us every weekend for three months to check out houses we liked, and she was always savvy about the state of the house and what might appear on the disclosures. She struck the perfect balance between giving advice and allowing us to form an opinion ourselves.

~ Maria J.

Sophia was a dream to work with. She handled a very difficult short sale for my wife and I. Without her help we would have been lost. She was a great negotiator and partnered with us to help explain every piece of paper that we had to sign as well as assisting us gather proper documents an information all the parties needed. I can't recommend her more highly.

~ Nate M.

Sophia helped my wife and I during our house search this summer. She was incredibly diligent, honest and forthright. Unlike a typical agent she actually advised us against couple of houses due to issues she discovered in the disclosures (she reads every word). As first time buyers we were easily seduced by appearances but Sophia kept us grounded! Definitely look forward to working with her again and would definitely recommend her services to friends.

~ Sarang R.

Sophia has a sign in her office which reads "tenacity" which describes her commitment to her clients and her ability to follow through on a transaction. She's a great (full time!) agent to work with, and as a first time home buyer. I can't express how important it was to have her by our side to help us every step of the way. She's straight-forward (former lawyer), and french (former Parisian city girl), which only adds to her charm. Beyond her great work ethic, she conducts herself by the book with an uncommonly high degree of professionalism. Sophia will look out for your interests, and protect your privacy. While I'm happy to have a home (thanks Sophia!), my wife and I will miss having her as our agent.

~ Stephen R.

I am so thrilled that I chose Sophia Delacotte to handle the sale of my condo. Having had my first sale fall through two years ago at the fault of my realtor and title company, I was very nervous about going through the process again.Sophia’s confidence and ability was unwavering. She is very thorough and detailed, and her great follow-through skills assured me that nothing would slip by unnoticed.Everything went smoothly with the sale, even with my many unconventional secondary loans. Escrow closed on time, and I received my funds quickly. I would recommend Sophia to anyone buying or selling a home.

~ Radel S.

I was a first time home buyer in the US market, and Sophia has been fantastic helping me understand the whole process. I am so glad I hired her as my agent. She made every step go really smoothly and I have now found my dream house in the Bay area! She has been very responsive and quick to react when I needed offers to be put together. I strongly recommend Sophia for a Bay area acquisition, especially for non US citizens who are not familiar with local practices.

~ Sylvie B.

Sophia Delacotte is thorough, knowledgeable, and helpful. She assisted me with the sale of my condo. The condo sold after one open house, and I received multiple offers. Sophia screened all of the offers and recommended the offers which would close with the least amount of hassles or surprises. She is extremely knowledgeable about the real estate market. With her legal background, she is a strong and effective advocate for your side of the transaction. Sophia always kept me in the loop, was clear with what she needed, and the timing of the response to what she needed. She is a pleasure to work with, responsive, and committed to making the entire process go as smoothly as possible. I highly recommend Sophia and would definitely work with her again in the future.

~ Laurie O

I had to sell my house fairly quickly because of a move and imminent wedding. Sophia proved to be the best choice I could have made. She was extremely resourceful and guided me expertly through paperwork and expectations. The house sold after only two open houses, and we received multiple offers. I was also very satisfied with the price obtained. In addition, she made the whole process as painless as can be. Sophia provided very solid support, and her legal background was very helpful to navigate the documents required. I was glad she was on my side! I highly recommend Sophia Delacotte as your real estate agent.

~ Yves E.

It was wonderful having Sophia help my mother sell her house. She went above and beyond our expectations, and was very patient when addressing my mother’s concerns, making the process as smooth as possible. The house sold on the first open house, and we received multiple offers. Sophia screened all offers to make sure the one we chose would close without any surprises. I highly recommend Sophia to anyone needing a great realtor.

~ Phil R.

We used Sophia again this Spring as we had to move to reduce my commute. Sophia not only helped us to sell our house in record time but also was very diligent in managing the multiple offers market - she carefully analyzed all the options and helped us dot the i's and cross the t's with choosing the right offer and family.
When it came to finding our new home Sophia pulled out all the stops to ensure we got the home we wanted. Sophia built a strong relationship with the selling agent and ensured that our interests were protected. Staying up late into the night negotiating she secured the home we were looking for. Sophia also advised us throughout the process and made sure we did not just settle on any home - someone we can rely on with strong values a great work ethic and her customers interests being number 1.

~ Amin D.

We have Sophia as our realtor for close to 3 years and think she is really awesome. She makes it a point to understand our needs and gives us good advice on the market swings and how to offer on the properties that we were interested in. She doesn't push us and respect our thoughts and looks out for us.
She always makes time to see us even if it is at the very last minute and helps us through the whole process from inspecting the house and seeing if it fits our needs and personality, to thoroughly asking the buyer's realtor and being absolutely professional in giving a good image to the seller and his/her agent.
We bought our new home in 2014. Sophia stayed with us throughout the whole process till escrow was completed and was always still available to help us after.She is well connected and referred us to a great loan agent who gave us the best interest rate and helped us close in 14 days.
We will definitely ask her to assist us again if we are going to buy or sell in the future.

~ Stan A.

Sophia is the kind of person who makes your house dream come true. That was our case. Sophia listens to you and suggests places that work for you. She tailors time and resources for your special needs. Since we met her the house hunting was accurate and in a few weeks we were able to bid and get our dream house. After many years of house ownership, my wife and I feel very lucky we met her.

~ Angelo M.

It's really hard to find an agent who is looking out for you and your needs. Sophia cares for her clients deeply and understands what we want. She will go above and beyond to assist us in meeting the deadlines and helps us with understanding the intricacies of offering and the market trends.

~ Surt A.

Sophia Delacotte was the selling agent for our home in San Jose, California in September 2013. We were in contract for the sale in about three weeks. Sophia was a consummate professional from our first meeting, to our open house and through to our move out of state. She is extremely knowledgeable about the real estate market and, with her legal background, a strong and effective advocate for your side of the transaction. She is also a pleasure to work with, very responsive and is committed to making the entire process as stress free as possible. I highly recommend Sophia as an agent who is head and shoulders above most others in the profession. I feel we were fortunate indeed to have had her as our agent.

~ Kathy D.

Because of Sophia's clever strategy we made our offer sight unseen. We are now the proud owners of a Condominium. Because of her tireless efforts she made the whole process seamless. Thank you Sophia for all your hard work!!

~ Margie A

Sophia made my short sale purchase as easy as it could be. Honest, tough, does what you ask. I was very pleased. She Made sure I had all the right inspections to protect myself.

~ Paul B.

As a mortgage originator for over 15 years, I have worked with hundreds of real estate professionals. Sophia is actively involved with the purchase from the time of pre-approval to closing. However, it does not end there. She maintains a business relationship with her clients and is there to assist with any needs from service providers to home information. Her clients are her priority and they are fortunate to have such a fine professional representing them.

~ Camille D.

Great advice , incredibly efficient! Sophia successfully guided us to buy a house in a very competitive market, and helped manage the transaction every step of the way. You'll want her on your side!

~ Caroline M.

I have found Sophia to be a thorough, ethical, and extremely competent real estate professional. Her knowledge of this challenging real estate market and her passion to advocate for her clients is remarkable. I have worked with many realtors and I count Sophia at the very top of her profession. I have complete confidence that if you are looking for a no-nonsense real estate professional, you will find one in Sophia Delacotte.

~ Marc A.

Sophia is the most honest, ethical and loyal realtor I have ever worked with. To this day, I remember her telling me that if the sale wasn't in my best interest, she wouldn't feel comfortable representing me. It was very refreshing to know that the client's best interest was her foremost concern.
She stands by her clients from the beginning of the process until the ink is dry on the final document, and follows up after the sale to ensure no hidden obstacles have emerged.
She is diligent in her efforts to manage the process of a home sale with all parties involved. She keeps her clients informed every step of the way and works tirelessly to forge a positive outcome.
Sophia is also like a member of the family. She displays a true and genuine concern for the welfare of her clients and displays this not merely through words but through her actions.
Without hesitation I would recommend her to anyone in need of a realtor that is transparent, ethical, and a true professional.

~ Greg Z.

Sophia is very thorough, knowledgeable and helpful. The short Sale process is confusing and worrisome but Sophia was able to help me navigate the paperwork, deadlines and legal jargon. She was respectful, responsive and most importantly, she delivered results! I recommend her.

~ Ann A.

I will relocate with my family from Europe to Silicon Valley in summer 2012. Early in my quest to find a home, I was very fortunate to identify and work with Sophia Delacotte, a Realtor with Coldwell Banker in Almaden San Jose. Her help has been invaluable every step of the way from presenting our offer to the close of escrow a few months later. She has been remarkably helpful in particular with regards to dealing with all financial complexities attached to a cross border transaction. Thanks to an amazing sense of attention to details, she masterfully coordinated the entire transaction with all stakeholders and parties involved and made us feel completely safe about buying our first home in the USA. She has clearly exceeded all my expectations and provided a level of service largely beyond the call of duty of a regular real estate agent. I highly recommend Sophia to anyone looking to make a real estate investment in the Bay Area.

~ Nadia K.

My wife and I met Sophia socially, and she offered to advise us in our search for investment property in another city. Since then, she has been incredibly generous with her time, and has given us precious recommendations on what deals to go for, or run from. We are very grateful and wish her the greatest success.

~ Michel B.

Working with an agent like Sophia is like a breath of fresh air. She is diligent about providing information when requested and quick to respond to needs, or concerns. Her dedication to her transactions, from beginning to end, helps to insure quick and timely closings.

~ Heather C.

Sophia helped us purchase our first home, she was patient and addressed all our concerns. She's very responsive and I couldn't have picked a better real estate agent. She is the best!!!

~ Sal C.

Sophia is a straight shooter. I learned very quickly that it is of essence to have a Realtor who is bullish and will help you get what you need. Sophia was always keeping us in the loop, very clear with what she needed, the timing of it and the why she needed it piece. The short sale process if very confusing and frustrating for a buyer and yet she seemed to make it as seamless as possible. I would recommend her to anyone that is looking to sell!

~ Cindy L.

We met Sophia at an Open House and immediately clicked with her. We have worked together for several months now on various property and development projects. As her clients, we find her exceedingly smart, dependable, and thorough. On our very first collaboration with Sophia, she worked long and hard, carrying us through every detail. She had our back the entire time so we had peace of mind throughout. She's a real pleasure to work with; any client would be lucky to have her in their camp

~ Nora N.

Buying a home is stressful, meeting Sophia was a blessing. With our busy schedules she kept us focused and worked too many late nights with us "sorry Sophia" with us on offers. She was the calming factor for us during inspections and negotiations. When we did find the right house, we had a great team, but if it wasn't for Sophia overseeing everything and keeping everyone in the loop, I know we would have had undue stress that we didn't need. Sophia truly goes above an beyond. We owe her a lot